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EA falls on broker concerns about 'Star Wars'


cutXthroat

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15% is a enormus loss for a Company like EA that got so many project up and running and i sence that they are gonna drop down even more, i dont have a clue about to what level they will drop to but they will go down. Ofc not a ender for EA but it might very well be a ender for the fundings of this game. In the bigger picture of the stockmarket it sure is noticed by the crowd but companies has gone bankrupt in a day so sure. there are much worse cases.

 

I'm not quite sure what you just said there. But I think you're confused and thinking that because the stock dropped 15%, that means EA won't have the cash to continue to fund swtor?

 

No...the drop is in stock value which is primarily held by institutional and some retail investors. That means that the people who own EA stock lost money, not that the company's balance sheet suddenly lost 900 million.

 

You know what, I'm just going to stop trying to explain. I've already said that stock prices are not reflective of current value, cash flow, etc., at least not in the way you're interpreting it.

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Cept you're not dealing with mortgages here but a publicly traded company that gets it's investment capital by selling stock. K thx.

 

Except he's not a mortgage broker.

 

He's a market analyst who holds some really pathetic numbers for being specialized in software trading.

 

It's cool though. You people don't sound absolutely ludicrous judging the quality and enjoyment of a game by its performance on the stock exchange.

 

Lol.

 

Some people.

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It amazes me that people can do a search of "EA Stock" to start a forum riot, but they can't then continue ONE STEP and Google "Todd Mitchell scorecard".

 

Tip: If you valued his financial advice with your money, you'd be short. Big time. He's a shady analyst at best and just threw out some fluff to catch on.

 

Subscription games ALWAYS see this activity. Free time expires, numbers drop and a few investors sell their stock (6%).

 

With Mass Effect 3 and other upcoming games, those investors will be back.

 

Man the things people will do or say to remain ignorant (that goes for half of you in this thread). Oh well, you'll see how this game will flop 6 months down the line. Or maybe not; you'll be denying it then too.

 

If this isn't the start of a failing game, I don't know what is. (and lol, please don't even mention WoW, that was 7 years ago. Standards have changed. Gaming communities have changed. MMO's have changed.)

Edited by Esaru
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Except he's not a mortgage broker.

 

He's a market analyst who holds some really pathetic numbers for being specialized in software trading.

 

It's cool though. You people don't sound absolutely ludicrous judging the quality and enjoyment of a game by its performance on the stock exchange.

 

Lol.

 

Some people.

 

 

 

Lol! Read my earlier post. I don't even think you understand what I was saying.... I was commenting to someone else that mortgage ratings have nothing to do with analyst stock estimates for publicly traded companies. People buy and sell based on analyst advice. No offense but read before you quote me.

Edited by AugustusD
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Man the things people will do or say to remain ignorant (that goes for half of you in this thread). Oh well, you'll see how this game will flop 6 months down the line. Or maybe not; you'll be denying it then too.

 

How is what I said anything but fact?

 

Oh, that's right, because I'm the one in denial. Despite the fact that everything I said is backed by evidence, easily found on Google.

 

Some people are just too busy dragging everyone down with them.

 

Truth hurts I suppose.

 

If this isn't the start of a failing game, I don't know what is. (and lol, please don't even mention WoW, that was 7 years ago. Standards have changed. Gaming communities have changed. MMO's have changed.)

 

Except you're saying the exact same thing that's been said about every MMORPG ever launched, with a few exceptions. People were calling DAoC out on being the worst game to ever be released, and there are STILL active players. Enough that they keep the servers running.

 

The problem with you and many others is your shortsightedness, and really bloated definitions of what makes a game successful.

 

SW:ToR will still be here in some fashion a year from now. Maybe more, I'm no psychic - and neither is anyone else in this thread.

Edited by Stigas
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You release a lackluster game full of bugs that cost over 100 million $ and at the same screw over one of the most hallowed franchises there is to us nerds while pissing off half the subscriber base with insane patch times for europe.

 

People are starting to think BW is a synonym for fail pretty soon...

 

No wonder the stock tanks, market capitalism at work here.

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When your game is the topic of discussion on a financial website, you know your in deep trouble.

 

Stop making sweeping statements.

 

Marketwatch reports ANYTHING related to a public-listed company.

 

And SWTOR is a major product in EA's line-up. So of course it will appear in news related to EA.

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The lack of any working market knowledge contained in this thread + the amount of people spewing opinions is fairly amusing.

 

 

Send me a Bloomberg message and ask me how much knowledge I have. Anyway, I was trying to help explain that this is more of a correction than a downgrade. His original estimate was based on sales figures that were way to high to achieve by anything but maybe Modern Warfare. See my first post.

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So many haters...Please go do something else....Gloating at any crumb of negativty towards this game (or any other for that matter) just demonstrates what low lifes you are.

 

Your post reeks of hypocrisy. If you're entitled to throw meaningless figures at people who enjoy the game, we're entitled to call you out on their meaninglessness.

 

I mean.. I think we can all agree that, at some point or another, we've seen a movie that got terrible reviews or bought a car that wasn't the C&D car of the year, right?

 

Those investors wouldn't trust me to do their finances, so I'm not going to trust them to decide what games I enjoy.

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I'm not quite sure what you just said there. But I think you're confused and thinking that because the stock dropped 15%, that means EA won't have the cash to continue to fund swtor?

 

No...the drop is in stock value which is primarily held by institutional and some retail investors. That means that the people who own EA stock lost money, not that the company's balance sheet suddenly lost 900 million.

 

You know what, I'm just going to stop trying to explain. I've already said that stock prices are not reflective of current value, cash flow, etc., at least not in the way you're interpreting it.

 

Naa it aint about EA:s current wealth im talking. just because they drop 15% now dosent meen that they instantly lose 15% of thier treasury im aware of that ofc. Im talking EA as a brand. The brand is getting damaged when loosing precentage in this pace and a healthy way to stop the bleeding is to whitdraw future expenses for a product that the market feels is failing. that is why i suspect that they will cut of fundings. its not damaging to loose 15% as long as a company is aware of what the problem is and know how to prevent it from diving. In this case its obviously Swtor. I know that we are thinking in the same way but currently i lack of way to express myself and making typos all over since ive been up way to long and my head feels hammerd. I atlest understand exactly what you are typing and i agree fully with the above. Im of to bed this instant and sry of my clumsy way of typing offended you. it was never my purpose :).

Edited by Galvorin
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My point exactly. I guess no one ever reads the whole thread anymore.

 

Haters read the whole thread? ADD is hard enough to live with...don't ask them to patiently read something more than one sentance long :)

 

The game has bugs and some design flaws. It is not failed. It is not dieing. It is not going F2P this year. Yes, you do need to take your Ritalin daily for it to have an effect and no I'm not charging for my sound piece of advice :)

 

P.S. Not directed at the person i quoted btw.

Edited by Jamus_Divinus
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Short FAQ:

 

- is the broker saying that TOR is a failure?

No, the broker is saying that his estimates for the performance of TOR were too optimistic.

 

- isn't that the same thing?

No. If I said you were going to win $10m, and you didn't - that would make me an idiot. Whether you told other people that you expected to win $10m is immaterial if I'm pretending to be an expert.

 

- but this is accurate?

It's a prediction. Or more accurately a revision of his original prediction.

 

- are brokers always right?

This statement is basically a broker saying that "they got it wrong the first time", so obviously the broker isn't always right...

 

- so there's no problem?

The underlying concern of the analysts, and some players, is that TOR is vulnerable to high churn (players leaving basically). Without knowing the retention rate, this is all guesswork.

 

Basically, it doesn't mean much at this point.

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Send me a Bloomberg message and ask me how much knowledge I have. Anyway, I was trying to help explain that this is more of a correction than a downgrade. His original estimate was based on sales figures that were way to high to achieve by anything but maybe Modern Warfare. See my first post.

 

What's your Bloomberg id? I'm being serious by the way...

 

Your previous comment "Cept you're not dealing with mortgages here but a publicly traded company that gets it's investment capital by selling stock." is just wrong.

 

A publicly traded company does not get its "investment capital" (you should learn industry terminology) by "selling stock." Public companies don't run around trying to sell their own stock. If they need cash for operations or "capital expenditures" (the word you meant to use), then they can issue bonds/notes/CP...or generate revenue. If they are really desperate, they will sell assets or do a secondary...or fire people.

 

Thank you.

Edited by iheartnyc
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Haters read the whole thread? ADD is hard enough to live with...don't ask them to patiently read something more than one sentance long :)

 

The game has bugs and some design flaws. It is not failed. It is not dieing. It is not going F2P this year. Yes, you do need to take your Ritalin daily for it to have an effect and no I'm not charging for my sound piece of advice :)

 

P.S. Not directed at the person i quoted btw.

 

Such misguided optimism.

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Your post reeks of hypocrisy. If you're entitled to throw meaningless figures at people who enjoy the game, we're entitled to call you out on their meaninglessness.

 

I mean.. I think we can all agree that, at some point or another, we've seen a movie that got terrible reviews or bought a car that wasn't the C&D car of the year, right?

 

Those investors wouldn't trust me to do their finances, so I'm not going to trust them to decide what games I enjoy.

 

No he is right, you only post to try to upset people or start a flame war, that is called 'trolling'. You do it because you have your own reasons, we don't want to know them because sure enough they will be very sad, but that's your friggin problem.

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